FPIs withdraw ₹44,166 crore from Indian equities in October; 2026 outflows exceed ₹3 lakh crore

New Delhi: Foreign portfolio investors (FPIs) have withdrawn Rs 44,166 crore from Indian equities so far in October, pushing their total selling in 2026 beyond Rs 3 lakh crore amid rising crude oil prices, a stronger US dollar and elevated American bond yields.The sustained selling has added pressure on domestic stock markets, even as strong buying by domestic institutional investors continues to cushion the impact.FPI Outflows Reach Rs 3.04 Lakh CroreAccording to National Securities Depository Limited (NSDL) data, foreign investors have pulled out Rs 3.04 lakh crore from Indian equities in 2026, compared with Rs 1.66 lakh crore during the entire 2025.October's withdrawals follow net selling of Rs 35,861 crore in September.Earlier, FPIs had invested Rs 20,200 crore in July and Rs 29,631 crore in August, indicating a sharp reversal in foreign investment sentiment.Crude Oil, US Yields Drive SellingVedant Gupte, Co-Founder and CEO of Trackk, attributed the withdrawals largely to global capital repositioning rather than India-specific economic weakness.He said elevated crude prices amid Gulf supply concerns, a stronger dollar and attractive US bond yields were encouraging investors to shift money towards safer assets. FPIs Pull Out ₹27,048 Crore in May, Total 2026 Equity Outflows Cross Massive ₹2.2 Lakh Crore MarkAdditionally, the artificial intelligence-driven rally in North Asian markets has attracted foreign capital due to relatively cheaper valuations.Nifty Falls Nearly 14 percent In 2026VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said persistent foreign selling was a major reason behind Indian equities' underperformance.The Nifty has declined 13.87 percent so far in 2026, reflecting sustained pressure from global uncertainties.He noted that US 10-year government bonds offering yields above 5.2 percent made investments in Indian equities less attractive to foreign investors.Domestic Buying Provides SupportDespite heavy foreign withdrawals, domestic institutional inflows have helped prevent a sharper market correction. FPIs Continue Heavy Selling In April, Pull Out ₹48,213 Crore In 10 Days After Record ₹1.17 Lakh Crore March OutflowGupte remained positive about India's medium-term outlook, citing resilient domestic investment flows.However, analysts believe foreign selling could continue until US bond yields moderate and Indian equity valuations become more attractive.In September, FPIs also withdrew Rs 1,921 crore through the debt market's Fully Accessible Route and Rs 233 crore through the Voluntary Retention Route.

The latest outflows follow a net withdrawal of ₹35,861 crore in September